LJPC stock exploded more than 37% higher in pre-market trading on January 12, 2021, after the company announced an exclusive licensing agreement for GIAPREZA.
La Jolla Pharmaceutical Company (Nasdaq: LJPC), which is dedicated to the development and commercialization of innovative therapies that improve outcomes in patients suffering from life-threatening diseases, today announced that it and certain of its wholly-owned subsidiaries (collectively, La Jolla) have entered into an exclusive licensing agreement with PAION AG and its wholly-owned subsidiary (PAION) for GIAPREZA™ (angiotensin II) and XERAVA™ (eravacycline) in the European Economic Area, the United Kingdom and Switzerland (the Territories).
Under the terms of the exclusive licensing agreement, La Jolla will be entitled to receive: (i) an upfront cash payment of $22.5 million; (ii) potential commercial milestone payments of up to $109.5 million; and (iii) double-digit tiered royalty payments based on net sales of GIAPREZA and XERAVA. In exchange, La Jolla granted PAION an exclusive license to commercialize GIAPREZA and XERAVA in the Territories.
The European Commission approves GIAPREZA as a vasoconstrictor indicated for the treatment of refractory hypotension in adults with septic or another distributive shock who remain hypotensive despite adequate volume restitution and application of catecholamines and other available vasopressor therapies. The European Commission approves XERAVA for the treatment of complicated intra-abdominal infections in adults.
“Our agreement with PAION marks an important step in our global strategic plans to bring innovative therapies that improve outcomes in patients suffering from life-threatening diseases to Europe,” said Larry Edwards, President and Chief Executive Officer of La Jolla. “We are excited to have PAION as a partner and expect its commercialization expertise will be invaluable in maximizing the value of GIAPREZA and XERAVA in Europe.”
“We are excited to add these attractive hospital products to our portfolio, giving us a strong basis to launch our European commercial organization and to build out our sales and marketing activities,” said Dr. Jim Phillips, Chief Executive Officer of PAION AG. “We will be using single, hospital focused sales teams in each country to commercialize these products in Europe. The licensing agreement announced today puts us on strong footing to become a leading specialty pharmaceutical company in the fields of anaesthesia and critical care.”
GIAPREZA™ (angiotensin II) for injection is approved by the U.S. Food and Drug Administration (FDA) as a vasoconstrictor indicated to increase blood pressure in adults with septic or other distributive shock. GIAPREZA is approved by the European Commission (EC) for the treatment of refractory hypotension in adults with septic or other distributive shock who remain hypotensive despite adequate volume restitution and application of catecholamines and other available vasopressor therapies. GIAPREZA mimics the body’s endogenous angiotensin II peptide, which is central to the renin-angiotensin-aldosterone system, which in turn regulates blood pressure.
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